Macklem Warns Oil Prices Could Fuel Persistent Inflation

Bank of Canada Governor Tiff Macklem says inflation remains too high and is now driven mainly by gasoline and oil prices.

In a recent statement, Macklem highlighted the uncertainty surrounding future oil price movements. If these costs persist, they could hinder the cooling of overall inflation and shape households' and businesses' expectations on future prices, making it harder to bring down inflation.

Macklem emphasized that the Bank will be guided by its forecasts and the risks associated with them. He also warned that multiple interest rate hikes are possible if inflation proves persistent.